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Vietnamese government announces relief package for employers and employees affected by the COVID-19 outbreak

Vietnamese government announces relief package for employers and employees affected by the COVID-19 outbreak

15 Apr 2020

In light of the negative impact caused by the COVID-19 outbreak on individuals and businesses, the Vietnam government issued Resolution No. 42/NQ-CP dated 9 April 2020, approving financial relief package for COVID-19 pandemic victims (“Resolution No. 42“). The package targets six categories of individuals and businesses, including: impacted employees; impacted employers; household businesses with revenues below VND 100 million a year; people with meritorious service to the nation; poor and near-poor households; and social protection beneficiaries.

Under Resolution No. 42, employers and employees affected by the COVID-19 outbreak are entitled to the following aid:

1. For employees

2. For employers

Terminated employees are permitted to send their applications of unemployment allowances via post, or notifications on monthly job seeking report via indirect methods such as email, facsimile and post, to the relevant employment service centers from 1 April 2020 until the announcement of pandemic end by the authority. Employees are not required to obtain additional confirmation from the local authority on the pandemic situation as currently required under the law.In addition, impacted employers may apply for a suspension, for a maximum 12 months, of their contribution to the retirement and survivorship funds under the social insurance regime if the total number of their employees subject to social insurance contribution is reduced by at least 50% (due to reasons such as employees ceasing working, temporarily suspending labor contracts or being placed on unpaid leave), as compared to the number at the time of announcement of the pandemic by the government.

If an employee is eligible for more than one allowance category, the employee shall only be entitled to apply for the one with the highest allowance amount. Further, the above relief is only available upon application, so employers and employees must apply through the local authorities.

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